Affinity frauds target members of identifiable groups, such as the elderly, or religious or ethnic communities. The fraudsters involved in affinity scams often are—or pretend to be—members of the group.

Fraudsters may enlist respected leaders from the group to spread the word about the scheme, convincing them it is legitimate and worthwhile. Many times, those leaders become unwitting victims of the fraud they helped to promote.

These scams exploit the trust and friendship that exists in groups of people. Because of the tight-knit structure of many groups, outsiders may not know about the affinity scam. Victims may try to work things out within the group rather than notify authorities or pursue legal remedies.

Affinity scams often involve Ponzi or pyramid schemes where new investor money is used to pay earlier investors, making it appear as if the investment is successful and legitimate.

In Connecticut, affinity fraud is considered a serious criminal offense. The state's laws against fraud and deceptive practices, including the Connecticut Unfair Trade Practices Act (CUTPA), provide a framework for prosecuting such schemes. Affinity fraud specifically targets groups based on shared characteristics, and the state's legal system can address these crimes through various statutes that cover fraud, theft, and securities violations. Connecticut's securities laws also play a role in regulating investment activities and protecting investors from fraudulent schemes, including Ponzi and pyramid schemes. The Connecticut Department of Banking, through its Securities and Business Investments Division, is responsible for enforcing securities laws and can investigate and take action against affinity frauds. Victims of affinity fraud in Connecticut are encouraged to report the crime to the authorities, including local law enforcement, the Connecticut Attorney General's Office, and the Department of Banking. They may also have civil remedies available to them, such as filing a lawsuit to recover losses. It's important for individuals to be aware of the signs of affinity fraud and to verify investment opportunities with a licensed attorney or through official channels before committing funds.